ISLAMABAD: Pakistani social media users have been misled by a claim suggesting that Pakistan has sold its entire cargo terminals at the deep-sea port in Karachi to a UAE company for a meager $50 million. However, officials have confirmed that this claim is inaccurate.
The claim, which has gained traction on social media platforms, alleges that the entire Karachi Port has been leased to Abu Dhabi for 50 years in exchange for $50 million and $18 per container. However, these assertions are false.
Entire Karachi Port leased to Abu Dhabi for 50 years for $50 million dollars. And $18 dollars per container.
Yes. 50 years for $50 million only.
ہفتہ وار سیل جاری ہے۔
— Mir Mohammad Alikhan (@MirMAKOfficial) June 22, 2023
Muzzammil Aslam, a spokesperson for the Pakistan Tehreek-e-Insaf on the economy, also refuted the claim, stating that the government would not make such a deal. He emphasized the need for sensibility, explaining that there would be more significant financial outflows than the purported $50 million.
Handing over port for $50mn doesn’t make sense at all. Govt can impose royalty by themselves. There will be more profit outflows then this meagre $50mn. Be sensible please https://t.co/iro9QRalPE
— Muzzammil Aslam (@MuzzammilAslam3) June 22, 2023
In reality, the AD Ports Group of the UAE has signed a concession agreement with Pakistan’s state-owned Karachi Port Trust (KPT). Under this 50-year agreement, the UAE company will develop and operate four out of 33 berths at the Karachi Port’s East Wharf. The agreement requires the company to invest $220 million over the first 10 years.
Pakistan’s Minister Clarifies False Claims
Faisal Ali Sabzwari, Pakistan’s Minister for Maritime Affairs, clarified that the $50 million payment from the UAE company is an upfront payment for the concessional assets at the port, along with other charges. Additionally, the company will pay Pakistan $18 royalty per container, land rent, and other charges, with incremental increases every three years.
Minister Sabzwari further explained that the container terminals in question were already being developed by a Philippines-based company since 2002. The concession agreement with that company recently ended after a 21-year period. Subsequently, the Karachi Port’s board of trustees decided to sign a new concession agreement with the UAE company.
Therefore, it is crucial to note that Pakistan has not sold its entire port to any company. The concession agreement only pertains to specific berths and represents a partnership for development and operation, not a sale.
